"It also doesn't sound like you've put any thought into the challenge of simulating realistic swordplay as a generic engine that supports different historically accurate fighting styles, with all the nitty physics, kinematics, and for that matter historical issues to be dealt with."
You are controlling the sword so I'm not really sure what you mean. You need to mocap a bunch of moves from someone fighting in a historic style for the AI and then have the AI randomly jump between a half dozen attack sequences. Before our kickstarter we had a great animator and a bunch of playstation eyes and were able to get good motorcycle fighting animations for a price in the thousands.
I'm sorry but this project was obviously mismanaged. The extreme detail that went into designing the arenas seemed to consume all the resources of the project. Look at the videos of what they had. It is like 100% artistic detail and 0% gameplay.